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The Republic of Uganda Report of the Auditor

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The Republic of Uganda Report of the Auditor THE REPUBLIC OF UGANDA REPORT OF THE AUDITOR GENERAL TO PARLIAMENT FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2018 OFFICE OF THE AUDITOR GENERAL UGANDA DECEMBER, 2018 ii TABLE OF CONTENTS LIST OF TABLES ......................................................................................................................... v ABBREVIATIONS AND ACRONYMS .............................................................................................. vi GLOSSARY OF TERMS ...............................................................................................................viii FOREWORD BY THE AUDITOR GENERAL ..................................................................................... ix PART 1: INTRODUCTION AND PURPOSE OF THE REPORT ............................................................. 1 1.1 Introduction ........................................................................................................................... 1 1.2 Purpose .................................................................................................................................. 1 1.3 Summary of Audit Results ........................................................................................................ 2 1.4 Highlights from Audits Performed ............................................................................................. 4 PART 2: CONSOLIDATED FINANCIAL STATEMENTS ..................................................................... 10 2.1 Opinion of the Auditor General on the Government of Uganda Consolidated Financial Statements of MDAs for the Year ended 30th June 2018 ................................................................................ 10 2.2 Report and Opinion of the Auditor General on the Consolidated Financial Statements of District Local Governments for the Year ended 30th June 2018 .................................................................... 23 2.3 Report and Opinion of the Auditor General on the Consolidated Financial Statements Of Municipal Councils for the Year ended 30th June 2018 ............................................................................. 31 PART 3: GOVERNMENT MINISTRIES, DEPARTMENTS AND AGENCIES (MDAS) ............................... 39 3.1 Summary of Audit Results ...................................................................................................... 39 3.2 Cross – Cutting Issues for Consideration by the Oversight Committees ...................................... 39 3.3 Sectoral Key Findings ............................................................................................................ 48 3.4 Summary of Audit Results of entities ...................................................................................... 62 PART 4: COMMISSIONS, STATUTORY AUTHORITIES AND STATE ENTERPRISES ........................... 63 4.1 Summary of Audit Results ...................................................................................................... 63 4.2 Financial Performance of Public Corporations and State Enterprises for the Year ended 30th June 2018 .................................................................................................................................... 64 4.3 Cross-Cutting Issues for Consideration by the Oversight Committees ......................................... 74 4.4 Sectoral Key Findings ............................................................................................................ 86 4.5 Summary of Audit Results of Entities ...................................................................................... 92 PART 5: LOCAL AUTHORITIES/ GOVERNMENTS .......................................................................... 93 5.1 Summary of Audit Results ...................................................................................................... 93 5.2 Cross-Cutting Issues for Consideration by the Oversight Committees ......................................... 94 iii 5.3 Summary of Audit Results of Specific Entities ........................................................................ 102 PART 6: VALUE FOR MONEY .................................................................................................... 103 6.1 Overview ............................................................................................................................ 103 6.2 Definition and Focus of VFM Audits ....................................................................................... 103 6.3 Key Findings, Conclusions and Recommendations .................................................................. 105 Part 7: SPECIAL AUDIT REPORTS ............................................................................................ 137 7.1 Summary of Special Audit Results ......................................................................................... 137 ANNEXURES ........................................................................................................................... 140 ANNEXURE 1: OTHER INFORMATION, ACCOUNTING OFFICER’S AND MY RESPONSIBILITIES .............. 140 ANNEXURE II: SUMMARY ENTITY FINDINGS OF MDAS ..................................................................... 143 2.1 Adverse Opinions ................................................................................................................ 143 2.2 Qualified Opinions ............................................................................................................... 144 2.3 UnQualified Opinions ........................................................................................................... 157 ANNEXURE III: SUMMARY FINDINGS OF COSASE ............................................................................ 183 3.1 Unqualified Opinions ........................................................................................................... 183 3.2 Qualified Opinions ............................................................................................................... 207 ANNEXURE IV: SUMMARY FINDINGS OF LOCAL GOVERNMENTS ....................................................... 214 4.1 Qualified Opinions ............................................................................................................... 214 4.2 Unqualified Opinions ........................................................................................................... 222 ANNEXURE V: REPORTS AND CONSOLIDATED GOVERNMENT OF UGANDA FINANCIAL STATEMENTS .. 283 iv LIST OF TABLES Table 1: Status of Audit performance for audit year 2018............................................................... 3 Table 2: Summary of Opinions ..................................................................................................... 3 Table 3: Non-deduction and Non-remittance of taxes .................................................................. 43 Table 4: Wasteful/Nugatory Expenditure..................................................................................... 44 Table 5: Outstanding Receivables .............................................................................................. 45 Table 6: Untitled/Land/Encroached land/Other Land Matter ......................................................... 46 Table 7: Pending Legal Cases .................................................................................................... 47 Table 8: Under absorption of project funds ................................................................................. 52 Table 9: Details of Management Information systems within JLOS sector ...................................... 56 Table 10: Un-Consolidated State Enterprises ............................................................................... 64 Table 11: Profitability of Enterprises ........................................................................................... 66 Table 12: Returns on Assets ...................................................................................................... 68 Table 13: Liquidity of Enterprises .............................................................................................. 70 Table 14: Enterprise Gearing ..................................................................................................... 71 Table 15: Enterprises' ability to service loan obligations ............................................................... 73 Table 16: Corporate governance weaknesses .............................................................................. 75 Table 17: Pending Legal Cases .................................................................................................. 77 Table 18: Wasteful/ Nugatory Expenditure .................................................................................. 78 Table 19: Staff Shortages .......................................................................................................... 79 Table 20: Outstanding Receivables ............................................................................................. 80 Table 21: Noncompliance with statutory deductions .................................................................... 82 Table 22: Land Matters ............................................................................................................. 83 Table 23: Procurement Anomalies .............................................................................................. 85 Table 24: Non-operational projects ...........................................................................................
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